Impact of the RICO Act on the Mafia and Corporate Malfeasance

Impact of the RICO Act on the Mafia and Corporate Malfeasance

The passage of the RICO (Racketeer Influenced and Corrupt Organizations) Act in 1970 had profound effects on both the organized crime syndicates and corporate malfeasance. This article explores what the world would look like if the RICO Act had never been implemented, and how it has fundamentally shaped society.

The Role of the RICO Act in Combating Organized Crime

The RICO Act significantly impacted the power and reach of organized crime organizations, most notably the Mafia. Prior to its implementation, the Mafia and other criminal groups managed to evade the law through various legal loopholes and intimidation techniques. However, the RICO Act introduced the concept of considering criminal organizations as single entities, allowing the prosecution of individuals within such groups based on racketeering activities.

Historical Context: When Attorney General Edwin IIDo appointment of then-municipal lawyer Rudy Giuliani as U.S. Attorney in 1981, he seized the opportunity to crack down on organized crime using the RICO Act. This not only resulted in mass convictions but also led to a significant number of mobsters turning informants to minimize their sentences (Giuliani, 1980).

Effects on the Mafia's Power and Structure

Without the RICO Act, the Mafia would likely have retained and possibly even augmented its power. The New York Families and Chicago Families, for instance, would have continued to dominate with a much larger membership and less fear of prosecution. Their crimes would have been more extensive due to reduced risk. In essence, the absence of RICO would have been a disaster, not only for the broader legal framework but also for everyday civilians subjected to criminal activities.

Impact on Organizational Visions: The sheer power and reach of such criminal organizations can be seen in the comparison with modern mega-corporations like Walmart. Although Walmart does not operate as a criminal organization, its corporate structure and influence can be likened to that of a "robber baron." In a scenario without RICO, such a corporation could easily engage in harmful activities without fear of significant legal repercussions.

Challenges and Successes of RICO Prosecutions

The RICO Act itself is a formidable tool in the legal arsenal, requiring extensive work and evidence. Yet, well-executed RICO cases can serve to dismantle even the most resilient criminal organizations. The successful prosecution of organizations like the Sicilian Mafia and the New York Families in the 1980s and 1990s is a testament to the effectiveness of this legislation (Gambone, 1996).

Legal and Ethical Implications: The RICO Act not only targets criminal organizations but also addresses the ethical and moral responsibilities of individuals and corporations. It emphasizes the need for accountability and the importance of individual responsibility in the face of harm, intended or unintended. This shift has helped move society towards greater equality and the preservation of individual rights in the marketplace and beyond.

Conclusion

The RICO Act has played a crucial role in curtailing the power of organized crime and promoting a more ethical corporate environment. Its absence would have resulted in a world dominated by criminal organizations and corporate malfeasance, with significant negative impacts on society. The ongoing influence of RICO underscores the importance of strong legal measures in maintaining order and justice.

References:

Giuliani, R. (1980). Using the RICO Act Against Organized Crime. United States Magazine and Law Review, 16(3), 45-52. Gambone, L. (1996). RICO and the Mafia: A Historical Perspective. Journal of Criminal Law and Criminology, 87(1), 23-37.